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tv   Bloomberg Markets Americas  Bloomberg  April 30, 2019 1:00pm-2:00pm EDT

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schumer called the figure a very good thing that says the president pushed off tough questions about where the money will come from. schumer and house speaker nancy pelosi told the president his ideas are needed on funding. >> it was a very constructive meeting. it is clear both the white house and all of us want to get something done on infrastructure , in a big and bold way. there was goodwill in this meeting. that was different from some of the other meetings we have had. mark: speaker pelosi says there will be another meeting in three weeks to discuss how to pay for repair and roads, bridges, and other infrastructure around the country. a severe drought has lower the water level of the panama canal, forcing officials to impose limits on ships moving through the waterways. the restrictions on how deep the vessels can reach below the surface means large ships, primarily from the united states and china, must pass through
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with less cargo. that translates into lower revenue for each trip. rain is still pounding parts of mozambique today, several days after a cyclone struck the country. the united nations says aid workers are facing incredibly difficult conditions as they try to reach thousands of survivors. more than 40 people have been confirmed dead. this comes six weeks after a cyclone killed more than 1000 people in the region. on the streets of venezuela, antigovernment demonstrators are clashing with troops loyal to president nicolas maduro at an airbase in the capital. this comes hours after opposition leader juan guaido took to the streets in an attempt to lead a military uprising against maduro. it is the most serious challenge so far to maduro rule since guaido declare themselves -- himself the country's interim president. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over
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120 countries. i'm mark crumpton. this is bloomberg. 1:00 in new york, 6:00 in london, 1:00 in hong kong. i'm vonnie quinn welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world that we are following. global m&a appetite is on a 10-year high. what is fueling the confidence? institutethe milken 2019 conference to speak to brian kingston, brookfield asset management real estate ceo. one of the most powerful players in commercial real estate. plus, improving financial literacy for young women. an interview with girls inc. new york city ceo pamela around though. all that and more in the next 30
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minutes. abigail doolittle is here to bring us up to speed. abigail: a bit of a down day but we are well off the lows. doneer the nasdaq had been 1.4%, still on pace for his birthday in a month. weakness on alphabet. the dow almost positive. we have seen a lot of intraday reversals. it will be interesting to see if that happens with the dow and s&p 500. i mentioned alphabet. s&p 500, nasdaq underperforming. alphabet down more than 8%. for theointing sales first quarter were they missed estimates by nearly 2%. add growth dropping. analysts scratching their heads, considering many of the tiers were strong, and that is putting some fear in apple. they have had to cut their forecast twice over the last six months. some investors worried about whether there is an issue here,
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the outlook concerning alphabet. goodn down despite a quarter. amd reporting after the bell. some fears for them after alphabet missing. overall we have strength in chips. up .7%. ams trades in europe. finished up 21%, a huge earnings beat. this is an apple supplier. perhaps that bodes well for the apple report. two other apple suppliers putting up a solid quarter. finally, tomorrow, the fomc decision. take a look at the 10-year yield on the year. at the beginning of the year, coming out of that tightening cycle, then we had that big fed pivot in the middle of the month. during that time we have the 10-year yield down quite a bit, 2.5% essentially. interesting to see what happens tomorrow.
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most everyone is expecting that they will be on hold during the may policy meeting. vonnie: we will be watching with eagle eyes, thank you. forecast of economic headwinds and geopolitical uncertainties, many middle-market companies are bullish about the growth prospects. that is according to the ey global confidence factor. ed hammond joins us. ed, i want to start with you on deals. we learned that berkshire would throw in $10 billion in order to help with the anadarko oxy situation. $10 billion to buy anadarko. >> $10 billion and a very big presence with warren buffett. occidental could use that additional $10 billion and reduce the need for a shareholder vote, which would be one of the reasons anadarko said
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earlier there was uncertainty around oxy's ability to consummate the deal. the question then would be, do they take the remaining stock that they would put into the deal, almost 20%, and try to put a collar on it? if you do that, you give uncertainty to shareholders in anadarko about what they will be getting. we won't know the answers to those questions until we see what chevron does. chevronctation is that would come back with a counter bid, but that was before but that showed up in the fight. at this point, for them to come back, it will be difficult. they will need to go 20% or more above were the last bid. [no audio]
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the m&a market has really been on an uptick for quite some time now. ,ou look at the u.s. market obviously, as in valuations are very high. we looked at our survey and we are seeing levels of optimism in terms of pursuing deals. 52% of respondents are planning to do deals in the next 12 months. that is above the historic high we have seen for the last 10 years. we have been doing this survey for 10 years, our 20th survey. it's been reasonably predictive in terms of the activity. lots of confidence with respect to not only the m&a market by the economy. joe: how much of that confidence is being driven by the positive effect of doing m&a, versus doing the opportunity cost of not doing growth? we have seen sector that do not do growth and i'm being punished
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by shareholders. bill: you have to go back to what is driving all of this activity, activists are pushing for organic growth. not quite getting it. frankly, we are seeing a lot of transactions that are enabling transformations at companies which then turning to more transactions. also private equity. the amount of money on the sidelines that has been raised to private equity that has to be deployed. you look at companies that are reviewing their portfolios of companies they had, in terms of, should i hold onto the company, should i sell it? that is also bringing a lot of side.ctivity from the p/e combined with digital disruption, altogether, it is a frothy deal market. vonnie: how much of your barometers are leading indicators? consumers can sometimes be a leading indicator, but sometimes not. what does your capital confidence barometer say? bill: it's been reasonably
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predictive going forward. when we look at what companies feel about their own performance, what they feel about the economy, very positive. obviously, we are coming up with positive news with respect to gdp growth. likewise, 76% of companies feel their own financial performance is going to improve over the next 12 months. a lot of optimism with respect to the economy in the near term. ed: i want to pick up on what you said, convergence. get out oferfect jail free card for companies facing antitrust. if you are seeing this convergence, these companies making huge deals across sectors, what does that mean for antitrust and regulation on these very big trades? be outt will still there, there will be if there
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will be a fair amount of scrutiny with respect to that. fundamentally why companies are doing that, still outweighs that. really strategic reasons around it. it's a way to get access to technology and people. that is why you are seeing the convergence happened at the rate we are seeing. bill: if you are buying technology, and we see this in industrials at the moment, will there be issues integrating? been one of the biggest challenges in terms of coming out of the box. underestimating the challenges around culture, getting that upfront, setting those messages, getting those messages out to the employees to help them understand where the value is. foremost, capturing the synergies early on in the deal is key to that. cultural issues often can be an impediment. vonnie: it feels like everyone is an activist right now, even those are used to be passive investors are active in some way. is that a reduction of where we are in the cycle, changing environment? bill: i think changing
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environment. over the last 10 years in the m&a environment, there's been a maturation around this. it is rare that companies are caught offguard by activist investors. a lot of companies are proactive in that regard, getting at the front end of reviewing the portfolios, which is why we are seeing so much spin activity. vonnie: always a pleasure, bill casey, vice chair of ey transaction america advisory services. of course, ed hammond, delighted to be joined by you. brian kingston, ceo of brookfield property partners joins us from the milken global conference in beverly hills. this is bloomberg. ♪ this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i'm vonnie quinn want to bring you some headlines from the facebook conference in san jose. mark zuckerberg speaking right now and says we need to change the way we are running the company. he says we are limiting ways developers can access data, and says the future of facebook is private interactions. zuckerberg saying we need to change the way we are running facebook. -- stock is stopping, about down about .4%. that's virginia our coverage of the milken global institute conference in california. carol massar has a special guest. carol: i'm here with brian kingston, the ceo of brookfield property group. greek to have you here. we were on a panel yesterday and talking about the environment of real estate. if you have to pinpoint where we are in the cycle, how would you characterize it? brian: we are in the midst of
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what has been one of the longest recoveries, and a couple of months, will be the longest recovery in u.s. history. clearly, we are later in the cycle. the operating environment is very strong. strong gdp growth, low unemployment, low interest rates. supply in most of the real estate sectors is at historic lows relative to their long-term trends. carol: you see that continuing? brian: we see that continuing, and that is a favorable backdrop in real estate. carol: you close a big fund this year. what is her next big target acquisition when it comes to real estate? a $15 billiond is fund with a global mandate, so we can invest throughout the world. half of that will be invested in the u.s., because of the strength i talked about. the other half will be around the world. we are in europe, u.k., australia, asia. countries overall.
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among the global opportunities, any of particular where you see good opportunities? u.s., we hade the a large transaction in that on the last year, citi. high-quality portfolio of assets . it will really benefit from a lot of those favorable macro backdrop things i talked about. we have projects going on all over. about to close a transaction in shanghai. we are very active in europe as well. we are seeing good opportunities all over the world. interesting. is the economic doctrine does not look so good but that also provides opportunities for investors or you can get assets at a better price. are you seeing that play out? brian: with interest rates around the world very low, there is a hunger for yield, protection against inflation. real estate is a great place to be investing. in europe, with interest rates virtually at zero, if you can
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find some yield associated, returns can be attractive, even though you don't have a lot of growth. about we have to talk what we talked about yesterday. bloomberg talking about generation z. they like shopping at malls. mallre the second largest operator in the u.s. what is the future of the mall? brian: no question we are going through a period of adjustment in the realty sector. that is creating a challenging operating environment. in the long run, great real estate always wins. we on 100 of the 400 top shopping centers in the u.s. we enjoy 96% occupancy. carol: but how do you do that, is this just the case that they are in really busy, populated cities? and that makes it a success story? brian: that is part of it.
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with real estate, location is important. the other important thing is that you actively managed these assets. it is not a simple buy and hold strategy. in it to keep on investing in these, driving value into them. carol: are there any assets that you are thinking about getting out of at this point that you have held for a while? brian: last couple of years we have been pretty actively selling assets that have long-term fixed structural cash flows. we are at and historically low point in interest rates. as rates go up, you don't have the ability to grow your income with those assets. not a particular asset class, but assets with those characteristics, where there is not much opportunity to improve the underlying operations. redeployment capital into situations where we can capture mark to market and that growth we are talking about. carol: that to retail for a minute.
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what is the wall of the future? in 10 years, very different from what we see today? brian: it is constantly evolving and always has been. as a landlord, our job is to attract foot traffic into those centers. it is true for millennials and generation y, they are more interested in experiences. a lot of the things that we are curating have to deal with those experiences, movie theaters, entertainment. carol: brian, thank you so much. we appreciate your time. brian kingston, ceo of brookfield property group. vonnie: a wonderful interview from carol massar. we will have more later today, including exclusive interview with ken griffin, founder and ceo of citadel. still ahead, who runs the world?
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changenc. is helping to the conversation for women in finance. we speak to the ceo pamela maraldo. this is bloomberg. ♪
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vonnie: facebook down about half a percent. wanted to bring you some headlines from their conference in san francisco. mark zuckerberg speaking and so far he has said we need to change the way we are running company. they will limit ways developers can access data. also rolling out the messenger desktop app, and group video chat. that stock is lower. breaking the glass ceiling. girls inc. of new york city is making sure girls and up on wall street and beyond. changing the mindset about money
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and focusing on financial literacy. let's welcome the chief executive officer of girls inc. of new york city pamela maraldo. mission ofus the girls, particularly in new york city, major cities around the country. pamela: our mission is to encourage all girls to be strong and bold and to develop more female leaders. leadership, of course, requires a significant understanding of finance. women in general need that as well. women have significantly lower financial literacy rates, and yet, because women earn less, save less, and women live longer , which is not a good formula for a lifetime. so we start early with girls. the girls we serve often come from very poor communities. money takes on almost a supernatural importance. we try to change the
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relationship with money because they are often ambivalent about it. wiseach them about saving, spending, investing, and we start by teaching them that they -- that their wants and needs are different. they don't need to have it because their best friend has it or is on television. our teachings are experiential. is of my favorite stories something called the investment challenge. we also teach to invest. voya, gave us $50,000 in actual dollars for a group of girls in our program to invest. at the end of a one-year period -- this is a true story -- they had a 54% rate of return. young girls in high school. if you 4%. -- 54%. that will have a profound influence on them. vonnie: how do your programs work, do you go into schools, you have girls come to you? pamela: we do it in concert with
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public high schools around the city, sometimes independent schools. but the point is, we are all over the city, and we start at a young age. most of the girls are poor, so it is doubly important that we reach them. vonnie: do you find you have enough people getting involved to help the cause? pamela: we have wonderful companies that support us. companies like moody's, the data analytics program, macquarrie. 100% of the girls in our program go to college, compared to 65% from like communities. that is significant. taking that model and moving it into the college years. so we have really great backers. vonnie: a phenomenal model and you are raising money at the moment. you have a gala dinner coming up on may 8. had to theheckbooks,
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dinner and support girls inc.. pamela: that is terrific, thank you. maraldo, girls inc. of new york city ceo. i wanted to bring you some of the latest headlines from the facebook conference in san jose, california. mark zuckerberg speaking about the way the company is being run, and how to limit ways developers can access data. he is also talking about various apps that facebook will roll out, including a group video chat app, and messenger desktop app. he says it should be as easy to send money as a photo. you can tell what is on the agenda for facebook. the stock is down half a percent. ♪ so with xfinity mobile
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now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today. mark: i'm mark crumpton bloomberg first word news. president trump is proposing charging asylum-seekers a feature profits -- process their
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applications, as he continues to crack down on the surge of central american migrants seeking to cross into the u.s. mr. trump says the asylum system is in crisis and plagued by rampant abuse. he is getting official 90 days to come up with new regulations. most of those arriving at the border say they are fleeing violence and poverty. the white house is ramping up pressure to reach a trade deal with china in the next two weeks. warning the u.s. is prepared to walk away from the negotiations. the acting white house chief of staff mick mulvaney spoke at the milken institute global conference in los angeles. asked me how long a negotiation would go on. i don't have a specific answer to that. it will not go on forever. at some point you realize, we are close to getting something done, so we will keep going. on the other hand, you join your hands up and say this is never going anywhere. you will know one way or the other in the next couple of weeks. shery: after four months of
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negotiations, the trump administration is making it's in patients known, in a ship from optimistic messaging about the prospect of a deal to ending their trade war that resulted in $360 billion. members of israel's parliament were sworn in today three weeks after a to mulch was natural -- national election. they delivered a national message of unity to the members of parliament. prime minister benjamin netanyahu easily won reelection and must now build a new governing coalition. the fighting in libya is putting the lives of thousands of civilians at risk. the yuan human rights office highlighted what it called its grave concern about people trapped in conflict in areas of tripoli. the yuan is calling for an immediate cease-fire and resumption of political talks. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries.
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i'm mark crumpton. this is bloomberg. live from bloomberg world headquarters in new york, i'm taylor riggs. amanda: live in toronto, i'm amanda lang. by our bloomberg and bnn bloomberg audiences. here are the top stories that we are following from around the world. its developersg conference in san jose, california. mark zuckerberg speaking this hour, saying they need to change the way they are running the company. we bring you the latest. plus, we will be live from the milken institute global conference. fresh off of its earnings, bp ceo bob dudley joins us. selling america in ontario.
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we speak to the ontario finance minister about the province's open for business message. quick check on the markets. we have what you may call the alphabet affect going on. focus on earnings continues, and disappointment from the big tech names creating a downdraft for other tech names. five points on the day, still close to that record high but moving off of it. the dow seeing pockets of strength. pfizer, mcdonald's on their earnings releases. positive momentum for the dow but not enough to offset other names including united health, apple, disney. the nasdaq the worst of the three. speaking of the ontario finance minister, a read on gdp in canada. take a look at what i did to the loonie. not great. hadcline in february and we a dramatic impact on the canadian dollar as we absorb that. taylor: in the middle of
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earnings season, about halfway through. i'm looking at valuations because we have interesting calls from the street. mike wilson at morgan stanley has been talking a lot about how valuations are full, looking at the earnings. we had wells fargo's chris harvey, he is hiking his target, saying p/e ratios are rising, and will continue to push the bull market higher as investors will be more willing to pay for american equities, as they outperform the other assets. we are looking at a 17 times p/e ratio. anytime we can mention standard deviation on the air, it is a good day. amanda: that is a great chart. to california, facebook's f8 conference is underway. mark zuckerberg giving his keynote address right now. we have our tech editor with us. some of the highlights, he started to speak, got massive
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cheers, and then he said, wait, it is not as positive as you think. >> probably a pretty depressing message for developers rely on facebook, and the message is the company is going to crack down on the type of data they have access to. obviously in response to the cambridge analytic a scandal. there is a balance that facebook has to have to strike, they have to give outside developers access to enough information about users and what they are doing to keep the ecosystem going but they also have to keep privacy in mind. taylor: thank you so much. apple'swaiting second-quarter earnings, reporting after today's close. ,he stock has seen a rally almost $300 billion in market value, driven by digital services. the street is increasingly
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skeptical of the gains. joining us for what to expect technologylose, infrastructure global team had at new street research. , skeptical ahead of the earnings report. talk about your recent downgrade, when you're looking at. downgrade, a neutral, now you downgraded again earlier this month. what is your thesis behind that? >> thank you. we downgraded apple first in last august. our view is simple. the first one, we had the conviction that since 2016, the number of people buying an iphone for the first time was actually getting to a point where it was not growing anymore, slowing down rapidly. normal shipments should be impacted by that. the second thing that happens is that these iphone buyers are actually sticking to their phones longer, the phones are
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getting more expensive. they like it, so they stick to the longer. if you combine these two things, that means shipments could be coming down your after year. in 2008, where the shipments did well, that is because the iphone x was very successful. if you reconcile the two things together, that means people who wouldn't normally replaced the iphone in 2019, did it in 2018. when you get into 2019, these people are not in the market anymore, and your shipments are crashing. happened in december, january. the stock reacted rapidly to that. the street is very smart looking at the value chain, what is happening in terms of iphone shipments. now the stock is recovering. apple will do fine because they
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are growing in services, which is something i would not disagree with. amanda: we did see some strong gains for apple stock based on enthusiasm around digital services. is that subject to watch after the bell? >> that is a place to watch out for but they be not after the bell. a quarter will not tell you anything. this view that apple will do well in the long run with services, i cannot disagree with it, but that will play out over years. in five years from now, service will be most of apple's valuation. in the near term, we're in a transition where the street will be focused on how a company guides for q3, and what that implies in terms of shipments. taylor: what about the wearables? those have been lagging a little bit. you talk about the watch and the other wearables, what are you expecting from the company today? >> i expect to see good growth there. that is part of what makes apple so strong. , and as a brand is strong
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their ability to innovate is good. but the same problem. x, $1000,by an iphone then their pods, then iwa tch. they spend more money on these devices and keep them longer. as you see good growth in these wearables, you will see it waiting as a core iphone business. more wearables mean more opportunities for services, healthcare services, so that is a good thing in the long run. amanda: one place we are watching closely, we are seeing rumors about big declines of the phone in china. is that a legitimate concern? >> yes, it is. this is something that makes y, worse than we thought. in only did these consumers
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china rush for the iphone x last year, so not in the market anymore this year, but in addition, we see the broader market in china, consumer demand is weak. we ran the numbers on q2 compared to q1, and we saw a little bit of weakness. that is a secondary one. amanda: great to have your thoughts, pierre. thank you for being with us. navigating oil volatility. we had bp ceo bob dudley with us from the milken institute .19 global conference. -- 2019 global conference. this is bloomberg. ♪
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taylor: this is "bloomberg markets."
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i'm amanda lang in toronto. taylor: i'm taylor riggs in new york. the 2019 milken global conference is in full swing. jason kelly is standing by with a key voice in the world of oil. jason: thank you. bob dudley here with me from bp. a big earnings day. it all started yesterday. you are a global man. what was the key takeaway for you from earnings this quarter bob: this is the first quarter that earnings were down a little bit. earnings were smooth across the world. very pleased with the earnings. no real big surprises. fine. jason: steady as she goes. bob: one of the things we are always interested in is your trading business. we got a little bit of detail about natural gas. tell us what was moving there. in: we had a good quarter
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global oil trading, natural gas. lng prices were moving a bit. oil prices were very volatile. three or four days down, just on a tweet. there is a lot of volatility in the oil markets right now. everyone is waiting to see about either the extension or no extension of iran waivers. the market is not sure. extended, you'll see the price of oil dipped a bit. if not, it could drift up. jason: i know it is pretty guarded how the trading operation works, but what was driving the success on the oil side? bob: i think the position that was taken by bp, coming out of the new year's season, we thought rises with titan. all the data looks like that. remarkably, they dropped to about $50 a barrel and then have come back stronger throughout the quarter. just weal magic trade, believe that tyson -- that prices would tighten.
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you say, prices are highly susceptible to politics, social media platforms, sentiment. how do you manage that? bob: you cannot always get it right. we try to do it on the fundamentals long-term rather than short-term reactions to things. fundamentally, the markets are tight this year. you look at what is unfolding, venezuela define economic gravity, reports of more violence in libya. these things approached the fundamentals. you look at the production growth in the permian but it is still bottlenecked. that will not be there forever. jason: what is your biggest worry about oil prices through the rest of 2019? bob: we plan the company on $55 a barrel, a very narrow fairway for bp. if i worry about it long-term, not short-term, long-term we end up with a spike or drop.
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that is not good for the world or planning. right now, i think we will be in 75 42019.ay of 60 to jason: talk about the integration of bhp assets, especially as you learn about the shale market. bob: great company, great assets. we only took over the operations on the first of march, so really early into it. we have got synergies that will happen, very fast, we looked the assets a lot. we are part of the checkerboard and in the permian, if you have seen. the historical reason why leases are shaped like a checkerboard. we have people between us. down the road, they'll be some consolidation or swapping to make them more efficient. we like the rocks. we have a great team working on natural gas in the u.s., and now they can turn to crude oil, which is great. jason: does that consolidation come sooner rather than later, in the near term, this year,
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next year? bob: i think there is no need to rush it. it is one of those things, when you look at that big piece of java be, not just for us, it would be irrational for the space. jason: you think it will be competitive as you figure out who will get the upper hand? bob: you could have the industrial logic of companies rationalizing -- you could do swaps. pairs of companies could see value in that. bhp, wewhat we did with can do that with other assets. it is a nice extra piece of business for bp. you will see us divesting some of that to make sure that we return to shareholders some of the money we put out. jason: you anticipated my next question, those investments. how is that going, is in the pace you want? bob: no rush. data rooms open for a
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number of months now. i'm surprised by the number of companies interested, looking at the assets, data. it bodes well for whenever we decide. that: what do you owe surprise two, where's the interest coming from? bob: it's a wide variety of interest on the buying set. some of the bigger companies we know. some of the independents that we know, and then there are essentially individuals that have a lot of backing of cash. private equity may be. it is the whole spectrum. jason: i wonder about the role private equity plays. it feels as an industry, they have been in and out of the oil business. how do you see them both competitively and is a partner at this point? bob: not only here in the u.s., we see private equity moving into the southern north sea.
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in some cases, they are buying established operators, in other cases, percentages and our partners. we have very good private equity partners. here in the u.s., it goes up and down a little bit with their sources of money. when it is tight, less. when money is easier, you see more of it. into: mr. buffett plays the broader conversation today with his investment with anadarko. does that change your strategy, does that change the landscape? bob: does not change our strategy. i was surprised. ago, mr.of years buffett was not particularly interested in energy. enginell show the energy that the u.s. has grown, support for that. he stepped into to help occidental, a great company. good,ko assets are really whether it is for occidental or chevron. it doesn't surprise me. jason: great to catch up. biggest thing you learn from
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hanging out here at milken? bob: this is a very different conference from the other ones. we have investors from all over the west coast, pacific rim. to only a chance to talk existing partners, shareholders, but possibly new shareholders. it has a broad remit of subjects here. i have enjoyed it. jason: great to spend some time with you, bob dudley, thank you. amanda: thank you for the interview, jason. much more from milken today, including an extensive interview with ken griffin, founder and ceo of sydow. up next, ontario is looking to drum of u.s. investor interest in the province. we get an update on what they are doing. my conversation with the ontario finance minister vic fedeli after this. this is bloomberg. ♪
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amanda: officials from the
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government of ontario argue new york promoting their message at the provinces business. i spoke to the finance minister earlier, and he insists the feedback has been positive. ontario iserstand open for business, open for jobs. there is no better spokesperson then the premier of ontario. we had a great lunch with some investors, meetings in between. they really feel a turnaround on ontario. everyone one of them speaks about it, that it is nice -- night and day over last year. amanda: in your most recent budget and elsewhere it is clear you are bracing for a weaker economy. how do you sell that in this environment where we have all these headwinds, the trade tension front and center? >> what we have done in the budget, even though we are forecasting 1.4% growth this year, 1.6 percent next year, we have put in a package of
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incentives for the businesses and cumulatively, it is what is exciting them. we have an equivalent of an accelerated capital cost that we implemented, $3.8 billion investment over six years, lowering high growth rates, cutting red tape's. that is not a bumper sticker but a serious red tape reduction of $400 million between now and the end of next year. incentives of including skills training, colleges and university as well. the business community knows that ontario is the place where they want to invest. amanda: in terms of the things that give them pause, we have heard the investment climate here has been a little more im, from from-- gr pipeline tensions. are you getting the sense that
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we are a junior partner in this relationship and there are some things that are out of our control? ontario is a big part of the canadian economy and we are so diversified, they understand it to be a true place to make their investments. at an investment dinner last night, we talked to companies looking to open operations in ontario, because of the diversified economy, growing population, diverse population. they know we have a path to balance that is open and transparent for the first time in many years. is a reasonable, responsible five-your path to balance. they know there are no tax increases coming, they know that our premier for says we pay enough taxes. we didn't go ahead with the previous governments tax increases in january. they felt the chill against the business is gone and are ready --invest in ontario we read
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ontario. that was seen as a campaign promise broken when you did not do that in the budget. we went out to the business community, we said we wanted to lower corporate taxes, how do you want it done? it now,ensus is do right away, and through and it's a limited capital cost. it was immediate relief, $3.8 billion in relief to corporations. again, we did not go ahead with the tax increases the previous government had prepared for january 1. amanda: that was vic fidelity, ontario finance minister. taylor: tomorrow, the fed decides. from new york and toronto, this is bloomberg. ♪
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♪ mark: i am mark crumpton with bloomberg's first word news. opposition leader juan guaido
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took the streets with a small contingent of heavily armed troops today in a bold and risky attempt to lead a military uprising and remove socialist leader link list maduro. rebellion seems to have only limited military support. at one point, the venezuela national guard troops who joined the opposition were forced to take cover when shots rang out. also called on venezuela to take to the streets and called on the military to join them. president maduro tried to project an image of strength, saying he spoke to several regional military commanders who reaffirmed their loyalty to his socialist revolution. democratic congressional leaders say they reached an agreement with president trump to spend $2 trillion on infrastructure. senate minority leader chuck schumer called the figure a very good thing that says the president pushed off of questions about where the money will come from. a white house statement released after the meeting didn't mention any spending figure but called the session

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